Although e-cigarette category dollar sales started 2014 with slight deceleration, growth is expected to keep “robust” in the years ahead, in accordance with Wells Fargo Securities.
The convenience store channel saw $45.2 million in sales within the a month ended Jan. 18, 2014, plus e-cigs accounted for another $12.4 million in national, cross-outlet markets. “This implies about $750 million in annual sales in Nielsen-tracked channels and we believe e-cig sales in non-Nielsen tracked channels (such as vapor shops and boutiques) plus online sales ($500-625 million) suggest the category has become about a $1.85 billion category,” said Bonnie Herzog, managing director of beverage, tobacco and convenience store research for Wells Fargo Securities.
Furthermore, Herzog said, her research shows that the tank-style vaporizers are underrepresented in the Nielsen data and continue to cultivate faster compared to the category. “We continue to believe that e-cig consumption could surpass traditional cigs and the combined operating profit pool could generate an annual growth rate in excess of 7% over the following decade,” she said.
Wells Fargo Securities reported that Lorillard's blu stood out while the e-cig category leader in the c–store channel, with 40.6% dollar share, accompanied by NJOY with 26.5% share and Logic at 15.7% share for the 52 weeks ended Jan. 18, 2014.
“E-cigarette dollar sales growth decelerated slightly to 45% in the period ended Jan. 18, 2014, driven by accelerated unit growth of 54.8%. This was partially offset by lower net pricing, that was down 6.3%—the category's first negative pricing,” Herzog said.
The common price per unit was $6.34, for the exact same 52 weeks. “Though we don't like to see negative pricing, we believe this might be due to increased penetration of kits, which offer a cheap per cartomizer,” Herzog said.
The cartomizer cost should continue steadily to trend down over time as a result of volume shift to multipacks as leading brands, including blu, NJOY and Vuse (set to roll out nationally in 2014), are coming out with starter kits at attractive prices.
Retailer Excitement
Rockland, Mass.-based Tedeschi Food Shops, which provides the three top selling e-cigarette brands Blu, NJOY and Logic disposables and rechargables, noticed the deceleration.
“Sales had leveled off in the fourth quarter of 2013, nevertheless the momentum seems to be in 2014,” said Steve Monaco, director of buying for Tedeschi, which operates 191 c-stores in Massachusetts and New Hampshire.
Inspite of the upswing, however, 2014 is pushing legislative challenges. New York City and Chicago made headlines while they extended their public smoking bans to include e-cigarettes, a pattern Monaco expects to see continue.
“Unfortunately, due to the not enough education on the section of our politicians, they think it really may seem like the proper action to take,” he said. “And it certainly isn't.”
Matthew Paduano, vice president of category management for Nice N Easy Grocery Shoppes Inc. in Canastota, N.Y., noted that inspite of the regulations in nearby New York City, he doesn't anticipate that restrictions will hit upstate New York anytime soon.
“My big concern is their state will attempt to tax e-cigs like they do all tobacco products. When this occurs, we could expect a decline in sales depending on what far their state goes with taxation,” Paduano said.
For the balance of 2014, Paduano said he expects sales of e-cigs to continue to cultivate double digits, especially with increased e-cigarette offerings across all Nice N Easy stores. The chain is in the act of expanding its offering to include more brands and additional varieties.
“We do carry products from blu, Logic, NJOY, Metro, Mistic, Swisher, Criss Cross, Krave, V2 and FIN. We've also invested in custom fixtures that we are still rolling out to your stores,” Paduano said. “We also rely on our wholesaler, Pine State Trading, who's very proactive in this segment. You have to have the brands your visitors want.”
One note of caution that's Paduano, and others, concerned, is the potential that you will see brand attrition while the big tobacco companies jump to the segment and the Food and Drug Administration announces its long-awaited e-cigarette deeming regulations, that have been still not offered at presstime.
“While I do believe sales will continue to cultivate in this category, I anticipate a ‘thinning of the herd'once the FDA arrives having its mandates,” he said. “I expect Altria and RJ Reynolds to roll out their offerings, but I also expect you'll see some margin erosion when this happens, since I anticipate requirements for more aggressive retails from them.”
Living Smoke Free
When Pop-Tarts were first introduced in the mid-1960s, they came in four flavours; today you will find 29. Of course, in those days, most people thought there were only two genders. Now Facebook allows us to choose from 50.
You can find healthier things to eat for breakfast than Pop-Tarts, and 50 genders may be a bit of a stretch. In many respects, these two facts is visible as signs of considerable progress: People will have a greater ability to find the specific products that best suit their lifestyle; and it's much more likely today, than it had been 40 years ago, that the lifestyle they need to pursue will be accepted by their peers.
But while entrepreneurs and an increasingly tolerant society have expanded the options offered to each and each of us, government is now a lot more controlling — exerting influence over some of the very minute information on our day-to-day lives.
In the past, potentially life-saving new technologies, such as for example soap and refrigerators, weren't put through lengthy approval processes before people could start benefiting from them. Today, it will take Health Canada on average couple of years to approve new medications. Just how many people have died, or experienced a serious decrease the their standard of living, because their medication was held up in a maze of government bureaucracy, will never be known.
Clearly, we wish effective oversight of new pharmaceutical products. Nevertheless the tendency nowadays is for governments to ban new services first and sort out the important points later, when the main benefit of doubt should be provided with to businesses and consumers to decide what products they wish to buy and sell. Electronic cigarettes supply a good case study in governments imposing overbearing regulations — the expense which clearly outweigh the benefits.
E-cigarettes were invented by way of a Chinese pharmacist in 2003 and hit the industry the following year. The technology has improved immensely and the devices have become in popularity. Euromonitor International estimates e-cigarette sales will reach $7-billion globally by the conclusion of the year. Other analysts expect the industry to be worth $10-billion by 2017.
You can find healthier things to eat for breakfast than Pop-Tarts, and 50 genders may be a bit of a stretch. In many respects, these two facts is visible as signs of considerable progress: People will have a greater ability to find the specific products that best suit their lifestyle; and it's much more likely today, than it had been 40 years ago, that the lifestyle they need to pursue will be accepted by their peers.
But while entrepreneurs and an increasingly tolerant society have expanded the options offered to each and each of us, government is now a lot more controlling — exerting influence over some of the very minute information on our day-to-day lives.
In the past, potentially life-saving new technologies, such as for example soap and refrigerators, weren't put through lengthy approval processes before people could start benefiting from them. Today, it will take Health Canada on average couple of years to approve new medications. Just how many people have died, or experienced a serious decrease the their standard of living, because their medication was held up in a maze of government bureaucracy, will never be known.
Clearly, we wish effective oversight of new pharmaceutical products. Nevertheless the tendency nowadays is for governments to ban new services first and sort out the important points later, when the main benefit of doubt should be provided with to businesses and consumers to decide what products they wish to buy and sell. Electronic cigarettes supply a good case study in governments imposing overbearing regulations — the expense which clearly outweigh the benefits.
E-cigarettes were invented by way of a Chinese pharmacist in 2003 and hit the industry the following year. The technology has improved immensely and the devices have become in popularity. Euromonitor International estimates e-cigarette sales will reach $7-billion globally by the conclusion of the year. Other analysts expect the industry to be worth $10-billion by 2017.
The Pros and Cons of E-Cigarettes Is the Electronic Cigarette a Safe Stop Smoking Aid?
What made you decide to try the e-cigarette? After reading this information, share your comments and read what others need to say.
You can smoke them virtually anywhere. Many say they can help you quit smoking, a bonus for people with COPD who often struggle withsmoking cessation.Others are skeptical and afraid to use them. The FDA would like to regulate them as medical products. The e-cigarette industry feels that the FDA does not have any substantiated reason to complete so. There's plenty of talk going on about e-cigarettes, so prior to making a choice to use them, learn the factual statements about their pros and cons.
What are E-Cigarettes?
Electronic cigarettes, or e-cigarettes for brief, are battery-powered devices full of liquid nicotine (a highly addictive chemical) that is dissolved in a solution of water and propylene glycol.Many appear to be real cigarettes, with a bright cylindrical tube, brown filter, and red-glowing tip. Others can be found in less conspicuous, darker colors.
How Do They Work?
Often termed "vaping," whenever you have a puff on the finish of the e-cigarette tube, a battery gets hotter the nicotine, which creates a vapor that is then inhaled into the lungs. The outcome is really a sensation of smoke in the mouth and lungs without really smoking.
The Upside to E-Cigarettes
Unlike tobacco products, there are no current laws in effect prohibiting the use of e-cigarettes in public places. Case in point, I work in a hospital and a fellow nurse smokes them immediately in the nursing station.
Here is what current research says concerning the positive facets of this product:
In a study of 40 tobacco-dependent smokers, researchers concluded that smoking e-cigarettes alleviated the want to smoke (after abstaining from smoking overnight), was well-tolerated, and pharmacologically more like a Nicorette inhaler than tobacco.
Another study of 50 smokers who wanted to reduce the health problems associated with smoking, however, not quit completely, concluded that the Eclipse make of e-cigarettes dramatically decreased the usage of cigarettes without causing withdrawal symptoms. In addition, when participants smoked Eclipse, the nicotine concentrations in their blood remained fairly stable and their desire to give up altogether remained intact. However, the analysis concluded that since the Eclipse increased carbon monoxide concentrations in the blood, it may possibly not be a safer range of cigarette. On the other hand, it caused few, significant adverse events.
In an incident study series, the e-cigarette was found to simply help three study participants -- who all had a documented history of repeated failed attempts at smoking cessation using professional smoking cessation assistance methods -- quit smoking and remain abstinent for at least 6 months.
During an on line survey conducted in 2010, researchers polled visitors of websites and discussion forums specialized in the use of the e-cigarette and smoking cessation. Of the 3,587 participants, 70% were former smokers, 61% were men, and the median age was 41 years. Normally, participants used the e-cigarette for approximately 3 months, drew 120 puffs/day, and used 5 cartridges/day. The vast majority of them used cartridges that contained nicotine. Ninety-six percent stated that the e-cigarette helped them quit smoking, while 92% said so it made them smoke less. A lot of the participants said the e-cigarette helped them fight cravings, cope with withdrawal symptoms, and avoid relapsing on cigarettes.
Benefits Of Using Electronic Cigarettes
What are the benefits of the e-cig?
E-Cigarettes are growing in popularity and for great reason. There are benefits to smoking an e-cig that go well beyond the conventional health concerns and most are very practical.
The biggest, and most practical, advantage of the e-cig is the truth that is much cheaper than traditional cigarettes. A normal smoker can experience weekly cigarette costs as high as $35.00 weekly and $140.00 monthly. That is equal to a tiny car payment. While this estimate pertains to the “pack a day” smoker, even those that can keep it to a group every other day will spend a whole lot more compared to the e-cigarette smoker.
The e-cigarette starter kit is the biggest expense involved with smoking e-cigs. Once the fundamental items have already been obtained, cartomizers and batteries are about the only real issues that should be purchased regularly and it'll still cost significantly less than 1 / 2 of what standard cigarettes cost. The amount of money savings alone are worth giving it a take to but the benefits don't end there.
A smoker rarely realizes the offensive odor that's produced by smoking standard cigarettes. It penetrates clothes instantly and can stick with you throughout the entire day. There is also the problem of smoking standard cigarettes in your vehicle. There is nothing worse, for a non-smoker, than to possess to ride in an automobile owned by a smoker and once cigarette smoke has penetrated a vehicles upholstery, it's very hard to remove.
The bottom line is that non-smokers, in most cases, find if offensive to be too close to a smoker. E-cigarettes, on the other hand, are completely odor free. There are no vapors to deal with and therefor nothing to smell. Clothing remains as fresh as the minute it had been taken from the closet and vehicle upholstery free of those nasty odors. The only method a non-smoker will have a way to spot an e-cigarette smoker is by catching them physically smoking.
There are social benefits to smoking e-cigarettes offering the odor free issue but that go well beyond that single benefit. Smoking is looked down on by non-smokers and society as a whole. Although it is not written in stone, smokers can find it difficult to obtain hired for certain positions particularly companies. It can also be very rare to locate a smoker dating a non-smoker and this pertains to friendships as well.
It is socially beneficial to make the switch to smoking e-cigarettes. Employers will never know that you will be a smoker if you smoke e-cigarettes and your date can have no problem at all together with your smoking if you're smoking e-cigarettes. E-cigarettes are simply just a whole lot more acceptable in societies eyes and for great reason.
There are more benefits to smoking e-cigs than may be covered within a article but these are probably a number of the more practical ones. In the event that you haven't made the switch from traditional cigarettes to the e-cig, than you don't know very well what you've been missing out on. Make the switch and begin enjoying all the advantages of smoking e-cigarettes today!
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